First off, let me thank and congratulate you and your team on a fun, social and democratic means for the "average Joe" to enter the world of start up investing. Once Title III of the Jobs Act is implemented at the end of 2015/beginning of 2016, where do your long term plans lie. If I may be so bold, your passion leads me to believe that you won't want to sell early to a larger financial corporation or banking institution. Would it be wrong to think that you will be in this for the long haul with eyes set on an IPO in 10 years or so?

Thanks for the kind words Dilraj! You are correct that we have no plans to sell out early. We're in this for the long term - it's an important enough problem that we're happy dedicating our lives to it. Once the JOBS Act is implemented, we plan to expand out of high-growth startups, into the heart of the economy: small businesses. We want to deliver a lot more capital to more entrepreneurs, and make us a nation of owners in private businesses again.

Hey guys, why did you raised the min. for investment from several hundreds dollars, and do you expect it to go back? Thx.

We're currently focused on increased the amount and velocity of capital we can deliver to startups. We are aiming for $250,000 within 3 weeks. After we hit that milestone, we'll begin decreasing minimums again.

Do you have investments that are ready for an IPO, or think there is a need for a secondary market for start ups.

I would love to get your thoughts on the Startup Stock Xchange (http://www.startup.sx/), and hear your thoughts on the potential of using less regulated off shore exchanges for smaller companies to expand their shareholder base. Do you think there may be a market for investing in social business, maybe through a focused fund? You know, for investors who want to do well and do good.

Only Zenefits is on a clear IPO path, and they don't want their shares transferred in a secondary market. We envision a secondary market in two years, more for local businesses and non high-growth startups.

Hi wefunder team, I am currently considering to extend my crowdinvesting activities and am actively looking for new investment opportunities. I do not qualify as an "accredited investor" (income is below 200K USD/ year), but I am based in Germany. Your FAQ states two contradicting points a) That it is okay to invest as a foreigner if not prohibited in my home country and b) that one needs to be an accredited investor. Does b) apply for foreigners as well, so that I currently am not able to invest until the next title of the jobs act comes into effect? Please answer by e-mail to [redacted] Kind thanks & regards, Philip

We accept investments from international accredited investors that comply with the laws of their home countries.

For investment into the Orange Fund 2, do you offer the same option for larger investments as you do for the 'Moonshot Fund', specifically, with an investment of $25,000 there being No Carried Interest?

Thanks
RC

Hi Richard. I'm sorry, but we do not waive carried interest for the Orange Fund. We have a limit of 99 investors we are legally allowed to accept in the fund.

I relate to Sam's question: A shareholder agreement should allow older investors to buy newly issued shares at the same price they are issued more lately in order to keep their % of ownership. Is this the case for your shareholders typical agreements?

We often have pro-rata rights. However, sometimes when a startup raises a significant Series A from a venture capitalist, the VC will force smaller investors to waive their pro-rata rights as a condition of the deal. If our financial stake in the company is not significant, we will comply, and not hold up the financing of the startup.

What is the minimum investment required to be one of the 95 investors?

The minimum investment is $10,000. However, since we're running against our legal cap of 95 investors, we're now only instantly accepting investments of $20k or more, and deferring acceptance of $10k investments until the end of the fundraise.

What valuations are getting with these companies? I know that's impossible to answer in a sense, because it will vary per company, so I guess my question is more when are you getting in? Same terms as the bigger angel investors you insist the companies have before you'll invest?

While in some cases we may have better terms because we invested earlier, it's best to assume most valuation caps will match what's typical for a Y Combinator startup at public launch (typically ranging from $6m-$12m). We'll prioritize access to the best companies, which are quickly over-subscribed, over getting better "pre-launch" terms.

I'm considering investing through Wefunder instead of waiting for the next Funders Club YC fund. First, I want to learn more about how you think you compare to them. What's the difference? Are you as good at picking winners? Is your investing thesis different?

FundersClub is also great at picking winners. We’re offering the same level of service and access to the same pool of startups with no fees, where FundersClub shares 20% of your profits and charges up to a 12% up-front admin fee.

We share a lot of the same deals; 50% of the YC startups we’ve funded have also been invested in by FundersClub. For instance, we’ve both funded Goldbely, StatusPage.io, One Month Rails, StatusPage.io, Regalli, and 7 Cups of Tea. It’s easier for insiders to pick the top 10% after they’ve had three months to make progress during the Y Combinator program.

In 2013, FundersClub had an advantage because they were able to invest in companies earlier than us, as we previously did not offer an investment vehicle like The Orange Fund. This means they were able to get in on “hot deals” well before they were oversubscribed on demo day. For this reason, we lost out on great companies that we knew were awesome, like Thalmic Labs and Teespring. We fixed that disadvantage with this fund.

We put more focus on evaluating startups by being very active users and customers of their products, and seeing how quickly they respond to detailed feedback. For instance, we funded Zenefits, the biggest win in our portfolio ($15m Series A after 6 months), because it was obvious through all our interactions that the product was vastly superior to anything anyone else could offer and the founders were A+ players.

Per the JOBS Act, is WeFunder a "funding portal" or is it a registered broker/dealer with the SEC?

Neither. We're an investment advisor. Title III of the JOBS Act will not be implemented until the middle of the next year at the earliest. We expect we'll have a relationship with a Broker-Dealer when the Title III crowdfunding rules are released.

We are a digital media start-up. We raised convert note capital, no equity round yet. How can we meet your application criteria of "reasonable valuation?" And, what is the "escrow trigger" and how do you calculate it? Thanks.

All startups on Wefunder raise with convertible notes. They almost always have a "valuation cap".

We are digital media start-up. Raised some convert capital already. Want to raise more capital. Can you clarify the "escrow trigger?" And since we only raised convert capital, we don't yet have a valuation, so we'd look to you guys for guidance. Thanks!

Hi Todd,

We only allow startups to raise funding on Wefunder after they have closed a small amount from a professional investor who sets the terms in the new round. So that investor would be the best person to look for guidance on a valuation cap on a convertible note.

The escrow trigger is the amount you'd need to raise to collect the funding. Otherwise, the investments are refunded. The minimum amount is $50k.

You claim that you allow investments from non US citizens. Yet you ask for US bank details after pledging the investment amount. You should allow investments using credit card, paypal or wire transfer to your account if you are serieus about overseas investors.

How will you fund operations until you start collecting 10% carried interest on successful investments? It seems like the $25 administration fee won't cover operating costs, and it could be awhile before investements start to pay off. Will you just sell more of the company to raise the funds for operating costs?

Also, how are you different than Crowdfunder?

Hi Jeff,

Yes, we'll need to raise more funding to cover our costs.

We don't see Crowdfunder as a competitor to concern ourselves with. Besides their execution difficulties, they don't have quality companies that are fundraising on their platform. They have no chance of getting those great high-growth companies unless they become investment advisors and structure single-purpose LLC's like our WeFunds. That's not an easy or cheap process, and they haven't chosen to go down that path.

AngelList is our competitor. We're different then AngelList in that we're designed to appeal to American's who live outside the Silicon Valley bubble. Our vision is to let all Americans, regardless of income, invest in the companies they believe in.

Please - what specofically are the legal documents you provide? I need to determine what my atttorney should review (your docs - less cost) and which he will need to create @ greater cost. When and how are your docs distributed once I have been selected to participate on your platform? I have asked this question twice before and have found no answer in my personal E-mail or on your Website. Thank you very much.

When you are logged in, you can click "set up fundraising" when viewing your profile in order to see the legal documents. We should make this more clear in the future.

On The Silver Plan. Let's say we get 10 accredited investors @ $25 K. So there is no Wefund Pool. In 2014 I want to do another raise on your platform attracting Non Accredited Investors. I have the money for A Gold Plan. Can both groups of investors be placed in a Wefund Pool?

No, prior investors can not be retroactively placed in the WeFund. Only new investors who sign contracts agreeing to invest via a WeFund.

Silver Plan: Question about the Escrow Account. This is my understanding. Am I correct? My raise is $250K I set The Escrow account at $75K - once I raise the $75K; that money is turned over to me. The remaining balance of the raise is turned over to me as received.

Hello wefunder, I like your story, attitude, and approach to investment crowdfunding. I am part of the team that is working on passing intrastate crowdfunding legislation in North Carolina called the NC JOBS Act. I would like to discuss it with you in more detail when you have time. It has already been enabled with exemptions in Kansas and Georgia, and is in process in Washington state and Wisconsin. What are your plans for supporting investment crowdfunding state by state?

Hi Mark,

We think you are doing great work! But we don't have any plans to do state by state crowd-funding. The types of startups right now we're working with take most of their investors from SF, NYC, or Boston.

That said, if the SEC entirely neuters Title 3, or it doesn't get a vote until 2015, we may experiment in NC for local businesses.

It appears that the new prices are required upfront and many people may have difficulty getting the package they really desire especially when you push your prices up at a later date. Do you offer the opportunity for your fees to be taken from the funds raised?

Hi Adrian,

We'd love to. Unfortunately, since we're acting as an investment advisor and not a broker/dealer, we're prohibited from law from tying our compensation to fundraising success. More info is in our FAQ: http://wefunder.com/faq

We think our $100 silver plan is a great starter package for those just beginning fundraising. But the $2995 Gold plan - which helps take smaller investors from the crowd - is meant for startups that already have taken investment from professional investors.

- in the your FAQ section, you indicated that your press contacts get startup profiles out to as many people as possible. How are you able to do that prior to 9/23/13 when general solicitation becomes legal?

- use of a WeFund is optional, correct? If so, how do you make money is startup chooses not to use a WeFund.

- startups are allowed to do a priced-round, correct? Not limited to convertible notes?

- I checked the 2 companies that currently raising funds and I didn't see an end date. Are there end dates associated with the fundraising campaigns?

- when 9/23/13 rolls in, how do you plan to certify accredited investors? My understanding is that self-certification will no longer be acceptable when general solication goes into effect?

- is there another form for sending these types of questions or is this the correct place to submit these questions to?

- is it possible to set up a call with your team, if we're interested in fundraising using your platform?

Thank you.

Hi Maria,

We're not advertising or doing press until 9/23.

The WeFund is optional. We still earn $25 per executed investment.

Price rounds are allowed.

There is no traditional end date to fundraising, but your escrow should be tipped within 3 months. If your fundraising takes too long, and your escrow target has not been triggered, investors become more likely to rescind their investments.

We'll be rolling out our new certification for accredited investors soon, allowing them to connect linkedin to grab job titles, upload documents from their accountant or lawyer, or put in a press link describing how their last company was acquired. We're also working with a third party that can verify net worth.

Questions are great here!

We're a bit overwhelmed with requests for conversations with founders who already have Wefunder profiles, and we're giving first priority to them.

I just updated our FAQ and wefunder.com/raise_funding to provide more information.

At what stage should a startup submit their concept for funding consideration? How soon is too soon?

It's never too soon to create a Wefunder profile and start getting followers. It's a little more tricky to figure out when to officially start fundraising though.

I'd recommend starting after a few people you know - through in-person conversations - have committed to funding your company. It's unlikely strangers would fund you if the people you know best have not.

You also know you've had enough traction to begin fundraising after investor discussions turn from "well, maybe if you do x, y, and z" to "yes".

But this a far more complex topic then one comment can address. I'd recommend reading some of Paul Graham's essays on the topic, starting with http://www.paulgraham.com/convince.html and http://www.paulgraham.com/herd.html

Nick - Thanks for the answer. I have some concerns about the "Startup of the Week". The four investors named for the Google Hangout are each and everyone a "tech" investor or entrepreneur. If research Angel Group websites and view their portfolios, one might get the impression that all we do and invest in in America is mobile apps, software, internet and medical devices. I'm not kidding. This does not bode well for the many of us in this country who are great innovators and entrepreneurs who invent and manufacture things you can actually hold in your hand and use every day. I would hold out absolutely no hope for being chosen because people tend toward what they "know". I get it.

That's a fair point about the listed investors being all technology-centric. As we grow, we'll do a better job of getting experts with expertise in different industries - manufacturing, hardware, etc.

Continued from below.... Crowd Funding needs to be better than that. The "Crowd" needs to own it. People who run the site should not be the arbiters of who gets funded. The site should provide the forum and some of the due diligence and let the "crowd" take it from there. I know it's your site and you can do whatever you want, but I hope you will give thought to what I've put forward. Cheers.

We are not arbiters of what gets funded. We choose 50 people who choose one Startup of the Week to feature. But other startups - not on the Startup of the Week - can also get funded.

Whoops, got truncated. This is post below continued. I would urge you guys to revisit the whole idea of "Startup of the Week" (YOU picking winners) and the "pitch roulette" thing. I have great hopes for the "crowd funding phenomenon" to get away from that stuff. It is just a re-hash of what all the Biz Plan competitions are doing. Essentially "Dog and Pony" shows.

Hi John. We totally get it. We're starting small, and expanding outwards from there. You'll still be able to raise funding even if you re not the Startup of the Week (investors can find you in the Top 20). Eventually, we'll have different themed weeks (i.e., Sports, Food, etc).

Hi John! It's looking like the SEC will implement the first portion of the JOBS Act in January, so we're gearing up for that. We'll send out an email soon. You can get a preview of what we are up to at http://wefunder.com/submit_company

Dear Wefunder was I wrong to ask all the startups on this site if they would rather pay $ 0.30 + 2.9% instead of $ 0.25 per transaction? You ask the question "How we make money" but it's also important when starting up to ask "How do we save money" because if you don't you might run out of business. I'm sorry everybody if my message looked like spam, it's not. I'm also a startup and think it's important to start a good way.

Yes, that was wrong: we received multiple spam reports. Our community uses this feature to ask a startup smart questions that an investor would ask... not to promote their own business.

I am building my follower base and have two endorsements already as well but I cannot see these endorsements on my site page when I log in - do endorsements get published on my site page? If so, where?

Hi Ronald. We'll be rolling out an update in a week that will allow you to manage your endorsements from your home page.

Hi, this is a technical question. I am noticing the link up by my picture for Friendburst does not work. It says 'page not found'. I have to go to the menu Discover Startups to find us. Another question is will the ability to send messages be implemented soon? It would be nice to let someone message us with personal questions about our company, or respond to people personally. Thankyou, you all are doing a great job here!

We're looking into technical issue. Messaging is on our medium-term list. First, we're working on a easy way to broadcast updates to your followers and investors.

Thanks for the reply, Nick. Your knowing this crowdfunding arena and the depth of the pockets of your investor database far better than me, I would like to seek your advice. I have a large project (already up on your site) for which I need $1M (the max allowed in any one year in the JOBS Act) to seed the first year's production of my animated children's cartoon motion pictures. Would you consider it more practical for me to seek a series of back-to-back crowdfunding $250,000 "rounds" through Wefunder (at possibly 3 month intervals or a new one following each successful "fill") rather than "go for broke" in trying to go for the max $1M straight up.

Hi Ronald. I'd recommend raising the minimum amount of funding required to achieve a significant milestone (i.e., a pilot, as opposed to an entire series).

I notice from reading some of the blogs that legal constraints seem to dictate that unless 100% of the funds sought are actually invested then none of what did get raised goes to the company - Did I read this correctly?

That is correct Ronald. As written in the JOBS Act, 100% of the funding target must be met.

Hi Guys! Very excited to be involved with wefunder. I ran into a few problems when setting up my profile. Somehow my old Facebook account is connected to wefunder, so the link it displays does not work. I need to remove and reconnect with the correct account. Your settings page does not provide a function for that. Please advise.

Hi Ray. I manually deleted the Facebook authentication for you. Our settings page won't be able to do it for a few more weeks.

Several questions here are about the possibility for investing as a non-US citizen. Which was answered positively. However, all forms on this site (including the investor certification) seem to require a US based address? How can non-US citizens get certified to invest?

Hi Jeroen. I just added international support for addresses in the certification form.

Several questions here are about the possibility for investing as a non-US citizen. Which was answered positively. However, all forms on this site (including the investor certification) seem to require a US based address? How can non-US citizens get certified to invest?

Hi Jeroen. This is on our todo list. We hope to get to it in the next month.

This is a mundane question but . . . I just signed up, and could not move forward with the investment certification without inputting a State, but I live in Washington, DC, and that is not on the pick list. I had to put WA in order to get to the next screen. How do I change that? Thanks!

Thanks for letting us know of the oversight! I added in Washington DC as an option, and fixed your address.

Great site! How do I get my start-up profile built? I don't see a link anywhere on the site to begin that process?

Hi Robert. Thanks! You can apply to our company submission beta at http://wefunder.com/access_code. We're going through the list and inviting folks in the order that they've signed up. But you should get an invite shortly.